India’s second-largest diagnostic chain saw net profit surge 63% on an adjusted basis as specialty testing and acquisition integrations drove volume growth. The company is continuing its “Metropolis 3.0” strategy to expand its footprint in Tier II and Tier III markets.
Metropolis Healthcare Limited (NSE: METROPOLIS) reported a 26% year-on-year increase in consolidated revenue to ₹406 crore for the third quarter ended December 31, 2025. Adjusted profit after tax (PAT), excluding an exceptional item related to the new labor code, rose 63% to ₹51 crore. This performance was supported by a 14% increase in patient volumes and a 13% rise in test volumes, reflecting sustained demand for organized diagnostic services.
Strategic Expansion Drives Diagnostic Growth
The company’s board of directors approved a bonus issue of equity shares in a 3:1 ratio. Operationally, growth was driven by the successful integration of recent acquisitions, including Core Diagnostics, Scientific Pathology (Agra), and Dr. Ahuja’s Pathology & Imaging Center (Dehradun). These acquisitions contributed to a favorable shift in the test mix toward specialized and complex diagnostics. The company also expanded its service network to approximately 750 towns, up from 300 in fiscal year 2023.
Metropolis Achieves Double-Digit Growth
Metropolis reported an EBITDA of ₹95 crore for the quarter, representing a 32.4% increase over the same period last year. The group EBITDA margin reached 23.4%, an improvement of 120 basis points year-on-year 6, 8. Revenue per patient (RPP) grew by 10% to ₹1,165, while revenue per test (RPT) increased by 11% to ₹557. Business-to-consumer (B2C) revenue grew 19% to ₹232 crore, while business-to-business (B2B) revenue increased 35% to ₹174 crore. For the first nine months of the fiscal year, revenue totaled ₹1,221 crore, a 24% increase compared to the previous year.
Metropolis 3.0 Strategic Growth Plan
Management’s “Metropolis 3.0” strategy focuses on expanding market share in core and new geographies through a micro-market approach. The company is prioritizing specialized testing and wellness segments, with its TruHealth and Specialty portfolios recording growth of 37% and 34% respectively in the third quarter. Recent initiatives include the launch of a Centre of Genomics in partnership with Illumina to scale advanced next-generation sequencing (NGS). The company aims for a mid-teen revenue CAGR from FY23 to FY26 and intends to achieve pre-pandemic margin profiles through increased productivity and digital transformation.
Transformation of India’s Diagnostic Landscape
The Indian diagnostic sector is undergoing an inflection point characterized by a shift toward organized national chains and rising adoption of preventive healthcare. Growth in the industry is increasingly coming from Tier II and Tier III cities, where Metropolis reported a 16% revenue increase during the quarter. The macro environment is further shaped by an increasing chronic disease burden and higher demand for precision diagnostics, which the company is addressing through investments in artificial intelligence and molecular genomics.
